Business Report
New Privacy Bills Introduced
Health Reform Bill Hits Snags in the House - Debate to Spill Over Into the Fall
NAR Submits Letter to SBA Administrator Requesting SBA Eligibility for Real Estate Agents
Conventional Residential Lending Report
Federal Reserve Board Proposes Major Changes to TILA Disclosures for Mortgages and HELOCS
Housing Report
Additional HVCC Guidance Released by FHFA, GSEs Called Good First Step by NAR
New Privacy Bills Introduced
Two Privacy/Data Security bills were introduced in Congress this week. Senator Patrick Leahy (D-VT) reintroduced the Personal Data Privacy and Security Act (S. 1490). This bill would among other things, require entities that maintain personal data to establish internal policies to protect that data, and to give notice to individuals when they experience a breach involving sensitive personal data. In the House, Rep. John Tanner (D-TN) introduced the Social Security Number Privacy and Identity Theft Prevention Act. This bill would among other things, prevent the display of social security numbers to the general public, including on the Internet and would require other safeguards of individuals' social security numbers.
These bills join several other privacy and data security bills that have been introduced this year. We expect that the debate over comprehensive privacy legislation will take place beginning this fall. NAR supports efforts to protect consumer privacy so long as new regulations do not unduly burden REALTORS®, the majority of whom run small businesses.
FTC Press Release
FTC Testimony
Melanie Wyne 202-383-1234, Scott Rinn 202-383-7508, Ken Wingert 202-383-1196
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Health Reform Bill Hits Snags in the House - Debate to Spill Over Into the Fall
After a lot of activity last week, the health care reform debate in the House turned very contentious this week. While both the Ways and Means Committee and Education and Labor Committees completed action on their portions of the House reform measure, HR 3200, the House Energy and Commerce Committee suspended its planned bill markup after the committee's Democrat Blue Dogs made public their concerns and unwillingness to support the Tri-Committee health reform bill as currently written.
Through out the week, very mixed messages circulated as to whether or not the Energy and Commerce Committee will try to finish their markup prior to the recess . Some would seem to indicate that the Committee leadership may try to move the bill next week while others would indicate that the concerns stymying any action are unlikely to be resolved in time to do so. In either event, it is likely that any floor debate will likely take place after the August recess.
In the Senate, the Finance has still not introduced its bill. Efforts to draft a true bipartisan measure continue. As a result, it's highly unlikely that the Senate will have time before it breaks for its August recess to reconcile differences between the Senate Health Committee and any eventual Finance Committee reform bills. Majority Leader Reid conceded late this week that a Senate floor vote will also take place this fall.
NAR continues to meet with House leadership and committee staff on the various components of the House bill. Staff continue to analyze the mammoth bills and consult with the members of NAR's Business Issues Committee and Federal Tax Policy Committee for specific policy input. NAR has not taken a position on any of the health reform bills at this time.
Visit www.realtor.org/healthreform
Marcia Salkin 202-383-1092, Ken Wingert 202-383-1196, Scott Rinn 202-383-7508
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NAR Submits Letter to SBA Administrator Requesting SBA Eligibility for Real Estate Agents
On July 24, 2009 NAR sent a letter to SBA Administrator Karen G. Mills requesting that any restrictions be removed to real estate agent eligibility for SBA loans. The letter from NAR President Charles McMillan states that current SBA treatment of agent eligibility is unclear and amendments to regulations should be made to clarify that real estate agents are eligible for SBA loans.
NAR letter to SBA Administrator
Scott Rinn 202-383-7508, Marcia Salkin 202-383-1092, Russell Riggs 202-383-1259
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Federal Reserve Board Proposes Major Changes to TILA Disclosures for Mortgages and HELOCS
On July 23, 2009, the Federal Reserve Board (the Fed) proposed changes to its Truth in Lending Act (TILA) regulations designed to improve consumer disclosures received in connection with mortgages and home equity lines of credit (HELOC). The changes are based on consumer testing conducted by the Fed and are designed to enhance the ability of consumers to shop for and understand the cost of mortgages and HELOCS.
The Fed announced it would work with the U.S. Department of Housing and Urban Development (HUD) to make disclosures under TILA complementary with the disclosures required by the Real Estate Settlement Procedures Act (RESPA). The Fed is considering developing a combined disclosure form that meets the requirements of both TILA and RESPA. NAR has urged the Fed and HUD to develop a single disclosure form.
The proposal also prevents mortgage loan originators from steering consumers to more expensive loans by prohibiting payments to mortgage brokers or loan officers based on the interest rate or other loan terms.
The public comment period will end 120 days after publication of the proposals in the Federal Register (expected soon).
Federal Reserve Board Press Release (7/23/09), including numerous links to more detailed information
Jeff Lischer 202-383-1117, Tony Hutchinson 202-383-1120
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Additional HVCC Guidance Released by FHFA, GSEs Called Good First Step by NAR
On July 22, 2009, the Federal Housing Finance Agency (FHFA) released a notice on the Home Valuation Code of Conduct (HVCC). The purpose of the notice is to clarify some misconceptions around the HVCC. The notice stressed that the Code provides for communications with appraisers about errors, additional needed information and unprofessional conduct. At the same time, Fannie Mae and Freddie Mac updated their Frequently Asked Questions for HVCC.
NAR President Charles McMillan said the FHFA notice and updated FAQs by Fannie Mae and Freddie Mac are a good first step in addressing concerns with the HVCC but more needs to be done. Mr. McMillan said "our members were experiencing delayed and lost sales because of poor appraisals conducted often by inexperienced appraisers who were not familiar with the area." NAR continues to call for an 18-month moratorium to further address the unintended consequences of the HVCC.
NAR's HVCC Page
NAR Response to FHFA Notice
Federal Housing Finance Agency Notice
Fannie Mae HVCC FAQs
Freddie Mac HVCC FAQs
Jerome Nagy 202-383-1233
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Last Updated: 07/24/2009 Bira de Aquino
